National

Three years after the start of the coronavirus pandemic, how, where and when American consumers shop and eat has transformed.

The big picture: People have come to love some changes, like curbside pickup and more takeout options, and have mixed feelings on others, like shorter store hours and QR codes replacing real menus in restaurants.

Some major COVID changes like social distancing measures and retailer mask mandates were short-term and are unlikely to be reinstated.

“The overarching way that shopping has changed since the pandemic is that people got more comfortable with a digitized experience with online shopping,” NerdWallet personal finance expert Kimberly Palmer told Axios.

Online shopping growth in curbside pickup, delivery

Curbside pickup went from being a convenient perk to a public health necessity overnight but is now a permanent feature at most large stores.

Almost every retailer shifted toward e-commerce including offering buy-online-pickup-in-store options as a “safer” way to limit exposure when shoppers were looking to make fewer trips into stores.

Instacart and Shipt both added staff to help keep up with demand. Walmart and Target also added staff for curbside pickup and expanded offerings.

The Walmart+ membership program — with unlimited free delivery from stores for orders $35 or more — launched in September 2020.

“Curbside is a trend that will not disappear, simply because a lot of consumers love the convenience and simplicity,” GlobalData managing director Neil Saunders told Axios, adding it also saves retailers money by not having to ship items.

In some cases, it costs more to use on-demand services but Palmer said many shoppers are willing to pay for the convenience.

The online growth has also lessened the effects of shorter store hours, Palmer said. “I think there's a solid case to be made that consumers actually overall have more hours that they can shop because of the upgraded online shopping experience,” she said.

What’s next: Stores are doubling down by opening stores with more drive-thru lanes and are starting to allow consumers to make returns curbside.

Target said it is rolling out the ability to make returns through its Drive Up service this spring and expects to reach all stores by the end of the summer.

Stores are encouraging customers to use their apps for loyalty programs and discounts as more retailers have stopped having printed sales circulars since COVID.

COVID accelerated the death of the physical coupon, which has been replaced by more QR codes and digital coupons.

Three years ago this week, stores started cutting hours or temporarily closing their doors.

Walmart stopped keeping stores open 24 hours on March 15, 2020, when hours were reduced and they were reduced a second time days later.

Most Walmart stores nationwide are now open 6 am to 11 pm daily and the world’s largest retailer confirmed to Axios that it has “not announced plans to change our store hours and return to 24-hour operations.”

“COVID was used as an excuse to cut store hours and I think it is unlikely that all retailers will return to 24/7 trading,” Saunders said. “The fact is that during unsociable hours the traffic at stores is extremely low and, in most cases, it is hardly worth the cost of opening.”

Retailers quickly added senior hours, which at many stores lasted the first year of the pandemic. Costco ended its special hours in April 2022.

Since the great toilet paper shortage of 2020 and the run on hand sanitizer, shortages of necessities and food have persisted. Retailers have often resorted to purchasing limits.

Supply chain struggles and labor shortages have intensified shortages along with winter storms and COVID variants.

High demand and panic buying, especially during lockdowns early in the pandemic, were also why shortages have continued.

Many of the shortages have been regional or short-term including recent egg shortages amid the ongoing bird flu.

In February 2022, a massive baby formula recall by Abbott Nutrition led to nationwide shortages and many retailers still have purchasing limits in place.

The COVID temporary store closings spurred some permanent closures and retail bankruptcies.

Some retailers like JCPenney were saved after shuttering low-performing locations and being purchased in bankruptcy while others like Pier 1 and Stein Mart shuttered all locations.

A rise in shoplifting since the pandemic also has led retailers to close locations.

Yes, but: Retail bankruptcies and closures were happening before the pandemic including at Bed Bath & Beyond and Macy’s, which are holding liquidation sales for some locations.

“The pandemic really accelerated existing trends in business failures rather than creating new ones,” Saunders said. “So sectors like department stores, which were already under pressure have seen a lot of closures and a loss of market share.”

COVID-19 changed the traditional holiday shopping season, pushing Black Friday-like sales earlier to spread out crowds and demand and moving more deals online.

Since 2020, the nation's largest retailers, including Best Buy, Walmart and Target, have kept stores closed on Thanksgiving, a break from a decade of holding Black Friday sales on the holiday.

By the numbers: Online holiday shopping grew at a slower pace in 2022 than past years but it continued to break records with $11.3 billion spent online for Cyber Monday 2022, 5.8% more than 2021 according to Adobe Analytics.

Black Friday also drove a record $9.12 billion in online sales, Adobe found.

Menus disappeared, more takeout options offered

COVID forced restaurants to make changes fast too, with many closing their dining rooms during lockdowns for several months.

Mobile and online ordering became more popular and restaurant apps have continued to drive loyalty and sales.

Many restaurants replaced physical menus with QR codes because menus are considered “high-touch” points. The controversial move meant consumers had to open menus on their phones.

Some restaurants added “pay at the table” tableside tablets and fast-food restaurants added more self-service kiosks.

A 2022 survey by Technomic of 1,000 consumers found 88% preferred paper menus to digital QR codes and 66% agreed or strongly agreed that they didn’t like QR codes, CNN reported.

The pandemic has transformed how we shop and eat. What changes do you like and which do you hate? Let us know here. (Some responses may be featured in future Axios newsletters and on Axios.com.)

How COVID permanently changed shopping and restaurants

How, when and where we eat and shop is different than three years ago.

Illustration of a shopping bag with the words thank you and a smiley face  outlined with arrows in a symbol for "change"

COVID-19

Retail

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

The former Minneapolis police officer serving time for the murder of George Floyd has pleaded guilty to two counts of tax evasion for the years 2016 and 2017, the local prosecutor's office said Friday.

Driving the news: Derek Chauvin, who appeared on video kneeling on Floyd's neck for more than nine minutes, was charged with aiding and abetting, failing to file tax returns to Minnesota.

From 2014 to 2019, Chauvin and his now ex-wife Kellie May Chauvin underreported their joint income by a total of $464,433, according to prosecutors. She pleaded guilty to tax evasion last month, per the Minneapolis Star Tribune, and will be sentenced in May.

He was sentenced to 13 months in prison Friday for the tax charges, with credit for 13 months already served, and agreed to pay restitution.

Don't forget: Chauvin was sentenced in 2021 to 22.5 years for Floyd's murder and later was sentenced to 21 years in prison with credit for time already served for charges that included violating Floyd's civil rights. 

The killing of Floyd, a Black man, sparked global protests in 2020 over police brutality and racism.

In January, Chauvin asked the Minnesota Court of Appeals to throw out the state's three murder convictions against him.

The court was expected to issue a ruling in response to his appeal within 90 days, AP reports.

Derek Chauvin, convicted of killing George Floyd, pleads guilty to tax evasion

From 2014 to 2019, Chauvin and his now ex-wife underreported their joint income by $464,433, according to the state.

A law enforcement officer escorts former police officer Derek Chauvin in Minneapolis, Minnesota. Photo: David Joles/Star Tribune via Getty Images

Minnesota

President Biden has made the COVID-19 crisis and a post-Trump return to national unity and traditional democratic ideals his top priorities. From vaccinations to stimulus to schools, Biden is seeking bipartisan compromise while showing a willingness to use executive authority and bare Democratic majorities in the U.S. House and Senate to implement his policies. Republican leaders are navigating deep party divisions over if and how to move beyond former President Trump.

Politics & Policy

The International Criminal Court (ICC) on Friday issued an arrest warrant for Russian President Vladimir Putin over his alleged involvement in the abduction of Ukrainian children and teenagers. 

Why it matters: The arrest warrants for Putin and another Russian official represent some of the first international charges issued since Russia's invasion of Ukraine. 

The ICC issued an arrest warrant for Maria Alekseyevna Lvova-Belova, Russia's commissioner for children’s rights, over similar allegations.

More than 40 countries that are party to the ICC had requested its intervention, according to the New York Times, which first reported on forthcoming war cases and arrest warrants.

The Kremlin has previously said it does not recognize the ICC or its jurisdiction, according to state-run media agency TASS.

State of play: Russia systematically relocated at least 6,000 children from Ukraine to Russia since the start of the war, a Conflict Observatory report published in February found.

Many of the children, who were taken to camps or other facilities, engaged in pro-Russia reeducation efforts, per the report. Some of the facilities were used for foster care or adoption in Russia and Crimea.

Karim Khan, the ICC's chief prosecutor, previously indicated that the alleged abductions were a priority for his investigators.

Russian missile strikes have frequently targeted energy facilities, water supplies, and residential buildings.

The forced deportation or forcible transfer of populations from land they lawfully occupy by occupying power is outlawed by the Rome Statute, which established the ICC.

Russia signed the statute but later withdrew its support in 2016.

Ukraine is not a state party to the Rome Statute but has twice accepted the ICC's jurisdiction in response to alleged crimes occurring on its territory.

What they're saying: "This is an important moment for the process of justice before the ICC," Judge Piotr Hofmański, president of the ICC, said on Friday.

Hofmański said the contents of the arrest warrants are secret in order to protect the identities of victims.

"Nevertheless, the judges of the chamber decided with this case to make the existence of the warrants public in the interest of justice and to prevent the commission of future crimes."

Ukrainian Foreign Minister Dmytro Kuleba applauded the ICC's action, saying Putin and Lvova-Belova "will be held accountable for stealing children."

Kremlin spokesperson Dmitry Peskov told Russian-state media on Friday that Russia considers the ICC's warrants "null and void" because it does not recognize the court's jurisdiction.

Peskov did not comment on the crimes the court alleged against Putin and Lvova-Belova, nor did Russian Foreign Ministry spokeswoman Maria Zakharova.

Lvova-Belova praised the arrest warrant against her, framing it as the international community recognizing her work of rescuing children from a war zone, according to Russian-state media.

Lvova-Belova has been personally sanctioned by the European Union, the and Japan, U.S., Switzerland, Australia, Canada and the U.K.

The big picture: It's unlikely that either of the cases will make it to trial, since the ICC cannot conduct a trial unless the relevant people are in custody, and Russia is unlikely to turn over its own people over.

The New York Times reported earlier this month that the Pentagon was blocking the Biden administration from sharing U.S. intelligence with the ICC about Russian war crimes in Ukraine for fear that it could set a precedent for prosecuting Americans.

The ICC launched an investigation into allegations of war crimes, crimes against humanity or genocide in Ukraine in the early days of the war.

Go deeper: What counts as a war crime and why they're so hard to prosecute

Editor's note: This story has been updated with additional background and reporting.

U.S., Switzerland, Australia, Canada and the United Kingdom

What counts as a war crime and why they're so hard to prosecute

International Criminal Court issues arrest warrant for Putin

The cases allege Russia has abducted Ukrainian children and teenagers.

Russian President Vladimir Putin in Moscow on March 16.

Russian invasion of Ukraine

Russia

China is becoming the most formidable rival America has faced, and the risk of confrontation with Russia, North Korea or Iran still looms. Authoritarians are rising, the chaotic Afghanistan exit revealed the limits of U.S. power, and the pandemic, climate change and other critical challenges continue to pose grave threats.

World

As generative AI tools like Dall-E and MidJourney become more mainstream, some illustration competitions are banning the submission of AI-generated artworks.

Why it matters: Debate in the art world around the impact of technology is nothing new. But AI's unique legal and ethical considerations have prompted some organizations to take a definitive public stance.

Zoom in: Of the nine major illustration competitions Axios reviewed, only three allow AI submissions. 

 The ADC Awards told Axios via email that the competition "is the advertising and design industry’s first global awards program to establish a separate discipline with a dedicated jury for AI work."

 The Society of Publication Designers allows submissions created with AI, but clarified over email that they "are absolutely against art theft, but support artists who use [AI] legally and ethically." 

Society for News Design currently has no guidelines or bans on AI submissions: "Everything is moving so quickly," says executive director LeeAnn Mandrillo over email.

Generative AI tools are currently under legal scrutiny for their use of licensed imagery in their training models. Several lawsuits have already been filed against major AI art tools over copyright infringement. 

Complex questions over how the legal system will view human/AI collaborations will need to be settled by the courts.

Mark Heflin, director of American Illustration-American Photography, says that his organization’s stance on prohibiting generative AI is consistent with existing guidelines. 

In the case of generative AI, artists wouldn't be able to say the work is entirely their own — a requirement for the competition.

“Even if we wanted to change our rules, the concern is the way that some of these generative AI tools have been built by scraping licensed material.” Such training models make confirming authorship of the work precarious, Heflin says.

The onset of people sharing AI-generated images via apps like Lensa and Dall-E on social media prompted the Society of Illustrators to ban such images in its competitions.

“The gluttony of the sharing was startling. I saw the harm in this, and what it could mean to illustrators and artists," says Tim O’Brien, who served as president of the Society of Illustrators and worked with colleagues to issue a statement against allowing AI submissions. 

"This was a pro-human effort to celebrate what humans can do," he says. 

Yes, but: Technological controversies in the art world have sprung up in the past, including with the advent of photography. 

More recently, the use of stock imagery to create photo-composited work or even switching from physical to digital submissions for competitions have generated debate among art organizations, according to Heflin. And for a brief time, the Society of Illustrators did not include digitally constructed artwork in their annual competition.

But for now, says Heflin: “I don't know where the copyright lives and that's not for me to say. It's going to have to go to Congress.”

Between the lines: Congress has rarely moved quickly enough to keep up with new technologies' impact on intellectual property rules, and the odds are very high that these conflicts will arrive in the courts before new legislation can help untangle them, Axios managing editor Scott Rosenberg notes.

Disclosure: Shoshana Gordon served as a juror for American Illustration 41 in 2022.

Illustration competitions grapple with generative AI

AI's unique legal and ethical considerations have prompted some organizations to take a definitive public stance.

Illustration of a red ribbon with a "no" symbol on painting in a frame with binary code 

Artificial intelligence

Automation and AI

From the Valley to D.C., Big Tech players like Facebook, Google and Amazon are under more scrutiny than ever as new technology develops and privacy and antitrust concerns grow in lockstep with companies’ ambitions.

Technology

President Biden wants Congress to enact tougher penalties for executives who oversee failed banks.

Why it matters: Silicon Valley Bank and Signature Bank were both taken over by the FDIC in the last week — events that threatened to grow into a larger-scale banking crisis.

The banks' downfall had to do with how they managed the risk that sat on their balance sheets — risks that sat in plain sight.

What he's saying: "I'm firmly committed to accountability for those responsible for this mess," Biden said.

"No one is above the law — and strengthening accountability is an important deterrent to prevent mismanagement in the future."

"When banks fail due to mismanagement and excessive risk taking, it should be easier for regulators to claw back compensation from executives, to impose civil penalties, and to ban executives from working in the banking industry again."

Backstory: Silicon Valley Bank experienced a record bank run last week after a crisis of confidence among investors and depositors.

At issue: Losses in its portfolio of long-term bold holdings, which sank in value as interest rates rose rapidly.

The bank faced the prospect of selling these assets for less than what they paid for them, in order to fund withdrawals. It announced a $1.8 billion loss on one such sale last week.

Critics point out that interest-rate risk was a well-known market risk over the last few years, and say the bank should have hedged its portfolio appropriately.

Worth noting: SVB CEO Greg Becker sold $3.6 million worth of his own stock in the company in late February — an action that the Department of Justice may scrutinize.

The bottom line: Becker saw tens of millions of dollars in the value of his equity evaporate over the last year — plus, he lost his job. 

While that might be somewhat of a deterrent for other bank executives, the law itself limits the Federal government's ability to hold banking leaders accountable, as Biden noted in his remarks.

"Congress must act to impose tougher penalties for senior bank executives whose mismanagement contributed to their institutions failing," Biden said.

Biden to Congress: Ban execs of failed banks from the industry

Silicon Valley Bank and Signature Bank were both taken over by the FDIC in the last week.

President Biden at an event in Monterey Park, Calif., on Tuesday.

President Biden at an event in Monterey Park, Calif., on Tuesday. Photo: Allen J. Schaben / Los Angeles Times via Getty Images

Joe Biden

Silicon Valley Bank

The box office is showing signs of life again after a stagnant few years due to the pandemic and patrons are returning to a revamped movie theater experience. 

The big picture: Hundreds of theaters have shuttered since the onset of the pandemic, but those that remain are betting that making movie-going a more luxurious or unique experience will bring back audiences.

Some theaters have become smaller with more comfortable recliners and seats to improve experiences. Others are embracing nicer dining options. 

Big chains like AMC Theatres, Cinemark and Regal have redesigned their theater rooms to include more luxury recliners.

Smaller, local theaters are making upgrades and holding special events beyond movies. Megaplex Theatres in the Salt Lake City area has remodeled many of its locations to include heated seats and laser projection. The theater chain told Axios it also hosted events for the 2023 NBA All-Star Weekend, too.

Nitehawk theaters, located in Brooklyn, New York, is a seven-screen theater with dine-in services that allows guests to have a meal during their showing. There's also a bar above the main cineplex that offers full food and drinks.

And Madison Theatre in Albany also has dine-in theater services similar to the national chain Alamo Drafthouse. Madison has also instituted an unlimited movie subscription service for its customers.

iPic, with its multiple locations, allows exclusive members to watch movies with pillows and blankets.

The New Parkway Theater in Oakland, Calif., has taken a different approach. Instead of remodeling a traditional theater, it has a created a space with beanbags, chairs and wraparound sofas.

"They're coming for the movie, but they're also coming to connect with people," manager Moses Ceaser of The New Parkway Theater told Axios.

Part of that includes enjoying events like "Bingo & Beer" nights, karaoke and team trivia.

"We're not making as much money off of each person that comes to the door," Ceaser said. "So we have to make sure they have a great experience and tell their friends and neighbors and even their enemies about all the great stuff."

Driving the news: As of mid-March, the box office has seen $1.3 billion in total gross for 2023, according to Box Office Mojo.

By the end of February, there was about $958.5 million in ticket sales for 2023, which is about 50% up from last year, CNBC reports.

Mega blockbusters have contributed to these numbers. "Top Gun: Maverick," "Avatar: The Way of Water" and a slew of Marvel films ignited a rush to theaters to end last year. 

Zoom in: Despite the recent successes, the number of U.S. screens has dropped by 3,000 since 2019 to around 40,000, CNBC reports. Most of the closures can be attributed to the pandemic.

What's next: The design of the theater isn't the only thing changing. AMC Theatres may soon set ticket prices based on where in the auditorium people choose to sit — a notable change to how most movies are priced. 

“While every seat at AMC delivers an amazing moviegoing experience, we know there are some moviegoers who prioritize their specific seat and others who prioritize value moviegoing," Eliot Hamlisch, CMO of AMC Theatres, said in a press release.

Theaters offer luxury, unique experiences to draw back moviegoers

Theaters have been struggling to bring in audiences since the onset of the pandemic.

Popcorn in a movie theater. Photo: Fabian Sommer/picture alliance via Getty Images

Movies

Media Trends

Axios Media Trends

YouTube will lift its restrictions on former President Trump's channel Friday, a spokesperson confirmed to Axios.

Why it matters: The restrictions have prevented Trump from posting any new YouTube videos to his account, which has more than 2.6 million followers, for over two years. 

taDHihannel has been frozen in time since January 7h.  . 

Catch up quick: YouTube initially suspended Trump's account in January 2021, several days following the January 6 insurrection, after his account violated its policies for posting content that incited calls to violence. 

A month later, the company said it would lift the restrictions — which prohibited Trump from posting new videos — when it determined that "the risk of violence has decreased."

YouTube also took additional restrictive measures, such as disabling comments on videos on Trump’s channel. Those restrictions will also be lifted. 

Details: On Friday, YouTube's vice president of public policy Leslie Miller told Axios that beginning March 17, the Donald J. Trump channel "is no longer restricted and the ability to upload new content is restored." 

"We carefully evaluated the continued risk of real-world violence, balancing that with the importance of preserving the opportunity for voters to hear equally from major national candidates in the run up to an election," Miller said.

"This channel will continue to be subject to our policies, just like any other channel on YouTube."

Be smart: Following the insurrection, YouTube did remove some videos on Trump's channel that violated its policies for inciting violence. Those videos will not be restored. 

With the restrictions lifted, Trump will also now be able to buy YouTube ads for his campaign, assuming they comply with YouTube's ads policies.

The big picture:  Ahead of the 2024 election, more Big Tech platforms are reviving Donald Trump's accounts that were frozen in the wake of the January 6 insurrection.

Meta reinstated Trump's Facebook and Instagram accounts last month following a two-year suspension.

Under Elon Musk as its new owner, Twitter has also reinstated Trump's account. 

What to watch: Trump has yet to post anything on Facebook, Instagram or Twitter, and has instead continued to rely on his account at Truth Social, the social platform he launched in 2021. 

It's unclear whether he will begin leveraging bigger platforms ahead of his 2024 race. 

A source said YouTube plans to inform the Trump campaign of its decision later today. 

Scoop: YouTube restores Trump's channel

The former president's YouTube channel had been frozen after the Jan. 6 insurrection.

Photo Illustration: Budrul Chukrut/SOPA Images/LightRocket via Getty Images

Donald Trump

The biggest U.S. insulin manufacturers have each committed to lower the cost of their products — a move that will save them money by lowering the amount they'd otherwise have to rebate Medicaid.

Driving the news: Sanofi yesterday said it plans to cap out-of-pocket costs for its most prescribed insulin, Lantus, at $35 per month for people with private insurance, following similar steps from Eli Lilly and Novo Nordisk.

Eli Lilly earlier this month also committed to $35 per month. Novo Nordisk, on the other hand, said it would lower prices by 75%, with its lowest price at $48.20.

The big picture: The companies were facing pressure from President Biden and some in Congress to cap out-of-pocket insulin costs, after the Inflation Reduction Act limited monthly costs of the medicine for Medicare beneficiaries.

Over 1 million adults in the U.S. say they ration insulin due to the high costs of the drug.

Be smart: The companies said they decided to lower costs to ensure that patients could afford their medications. But Novo Nordisk and Sanofi's changes kick in on Jan. 1 and coincide with the elimination of a cap that limits how much manufacturers have to rebate Medicaid.

What this means: Federal law tries to ensure that Medicaid pays the lowest possible price for prescription drugs, and manufacturers who want their product covered have to agree to pay a rebate.

If a drug manufacturer raises its prices faster than inflation, then the rebate they pay also increases.

Insulin prices had risen so much that the rebate owed was higher than the price of the drug. But the law limited what drugmakers to the insulin's price. 

That will end on Jan. 1, when a requirement from the American Rescue Plan takes hold. Then, Eli Lilly, Sanofi and Novo Nordisk's new low costs will save them from owing the government millions.

Friday's top stories

How COVID permanently changed shopping and restaurants

Derek Chauvin, convicted of killing George Floyd, pleads guilty to tax evasion

International Criminal Court issues arrest warrant for Putin

Illustration competitions grapple with generative AI

Biden to Congress: Ban execs of failed banks from the industry

Theaters offer luxury, unique experiences to draw back moviegoers

Scoop: YouTube restores Trump's channel

Pharma lowers insulin costs to save money

Meta's metaverse is on the back burner

Silicon Valley Bank's former parent files for Chapter 11

Poland, Slovakia become first NATO members to offer Ukraine fighter jets

SVB employees blame remote work for bank failure

Humanoid robots are coming

California's historic snowpack eases drought concerns through spring

TikTok CEO: App sale won't address U.S. concerns

3 Virginia hospital workers charged in death of Irvo Otieno